Ruling party, gov't mull selling stake in Incheon airport to public

SEOUL, Aug. 1 (Yonhap) -- South Korea's ruling party and the government plan to push to sell a stake in Incheon International Airport to the general public in a bid to benefit more people through privatization of the state-run company, officials said Monday.
The Lee Myung-bak administration in 2008 announced a plan to sell a 49 percent stake in Incheon airport, which includes a strategic tie-up with a foreign airport operator to secure international competitiveness.
Sale of the stake in South Korea's main gateway has been limbo for three years, with concerns over fee hikes and a hostile takeover by foreign companies, while the company that owns the airport is in good shape in terms of profitability and services.
The Grand National Party (GNP) "will push to sell (the airport's) stock by issuing government securities," the party leader Hong Joon-pyo said in a meeting with reporters.
Hong said the measure was discussed in a closed meeting with Lee, but he did not give a time frame or further details of the sale.
"Selling Incheon airport through government-issued stocks would be a policy that would benefit low- and middle- income people. It would leave no room for special favors in the sale process and would prevent outflow of national wealth," Hong said, noting the government will continue to retain a 51 percent stake to maintain its status as a state-run firm under the proposal.
Senior officials at the ministries of finance and transport said they were positively reviewing the plan, though they have not yet confirmed how to implement the plan.
Baek Yong-ho, a police chief of the presidential office, however, remained cautious over the plan, saying the sales of massive government-issue stocks could affect the profits of present shareholders.
Out of more than 300 state-run institutions or companies, the government had sold over 100 companies in 2009 to raise the competitiveness of the companies due to the generally low productivity and generous employee benefits in the public sector.
ejkim@yna.co.kr